PestCo Accelerates Midwest Commercial Expansion with Chicagoland Pest Services Deal

PestCo Holdings, the TSCP-backed national pest-control platform, is executing on its growth strategy in the Midwest with the acquisition of Chicagoland Pest Services. By integrating a well-established provider of both commercial and residential pest control based in Orland Park, Illinois, PestCo is reinforcing its regional presence and scaling its capacity to serve commercial clients.

Deal Summary

• Buyer: PestCo Holdings, a portfolio company of private equity firm Thompson Street Capital Partners.
• Target: Chicagoland Pest Services, Inc., located in Orland Park, Illinois.
• Business Scope: Chicagoland delivers pest-control services to commercial and residential customers in the Chicago metro area.
• Strategic Goal: The acquisition is a targeted move to strengthen PestCo’s commercial-service line in the Midwest.
• Transaction Structure: PestCo is acquiring the assets of Chicagoland Pest Services; financial terms were not publicly disclosed.
• PE Sponsor: Thompson Street Capital Partners, with a strong track record in building lower-middle-market service platforms.

Industry Context

Pest control is a deeply fragmented industry, characterized by many local operators and a mix of residential and commercial service lines. Platforms like PestCo are consolidating this space, targeting well-run regional firms to achieve broader geographic coverage, operational scale, and recurring cash flow. The commercial segment is particularly attractive: it often involves longer-term contracts, higher volume, and system-level treatments that can drive more stable revenue.

In recent years, several pest-control platforms have emerged, backed by private equity. These platforms combine local service relationships with standardized operational infrastructure - procurement, training, customer service - to improve efficiency while preserving the trusted reputations of the acquired businesses.

Lower-Middle-Market Roll-Up Perspective

PestCo’s acquisition of Chicagoland follows a disciplined roll-up strategy typical of lower-middle-market PE playbooks:

1. Strategic Geographic Build: The deal deepens PestCo’s footprint in a major metro (Chicago), reinforcing its commercial services network.
2. Asset vs. Equity Deal: By acquiring assets, PestCo may reduce integration risk while gaining control of operations and customers.
3. Recurring + Commercial Revenue Mix: Chicagoland brings both routine service contracts and potentially higher-margin commercial work, aligning with PestCo’s diversified revenue model.
4. Platform Synergies: PestCo can overlay its back-office, technology, and operational practices to drive productivity gains.
5. PE Capital Efficiency: With the support of TSCP, PestCo is executing targeted add-ons without relying solely on organic growth.

This acquisition is part of a broader M&A cadence for PestCo. Recent transactions include asset acquisitions of May Pest in Illinois (another Midwest deal), and Innovative Pest Control in Texas. These deals reflect a repeatable, PE-driven consolidation model.

Why This Sector Is Attractive for Roll-Ups

• Fragmented Market Landscape: There remains a large base of independent pest-control firms that are potential platform partners.
• Predictable Revenue: Many pest-control customers enroll in ongoing service contracts, creating stable cash flow.
• Commercial Upside: Expanding into commercial pest control offers higher volume and often more complex, recurring contracts.
• Operational Leverage: Centralized back-office systems, procurement, and workforce management enable cost savings and margin expansion.
• Capital Backing: PE firms like TSCP are investing in these platforms, seeing long-term value in consolidating a recurring-service business.

Conclusion

With the acquisition of Chicagoland Pest Services, PestCo is not just expanding in the Midwest - it is reinforcing its strength in commercial pest control. For TSCP and PestCo, the transaction aligns with a clear consolidation thesis: acquire high-quality regional operators, integrate operationally, and build a scalable national pest-control platform. For independent pest-control businesses, PestCo’s model represents a compelling path to access capital, infrastructure, and long-term growth without sacrificing local identity. For investors, it reaffirms that pest control remains a highly investable, strategically consolidating space with attractive fundamentals.